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28, November 201I ' European Commission DirectorateGeneralfor Economicand FinancialAffairs Affairs Financial Stability& Monetary Institutions Financial & Stabiliw Financial Headof Unit Angel Mr. Benjamin Brussels B-1049 Belgium F ax:ft32) 2 29 80998 Via Fax,EmailandMail (AIF) & Eu/Vaticar Autoriti di Informaz Finanziaria ione In re: (Vatican) 5, LetterofJanuary 2011 Commission MonnetaryAgreement European and (ref.no 93l9) DearMr. Algel: and of with theEU Commission 5, On January 201I followinga series letters of the Euopean CentralBank, you refened our allegations post World War from former Yugoslaviaby cunent and Two eramoneylaunderingof assets pastaccountholdersat the Istituto per le Operedi Religione(IOR) to the AutoritA di InformazioneFinanziaria(AIF) which wasjust formed at the beginning of201l dated or The AIF hasrefusedto acknowledge respondto our correspondence to 24, I]uly2,2011andSeptember 2011. We alsoattempted fax the AIF on and with Vaticanagencies 2, on September 2011.Based my prior dealings by nonfeasance the AIF organs, canonly concludethis is yet againdeliberate I to avoid takingjurisdiction. I note someAIF officers are forner or culrent for officials ofthe IOR. This behavioris completelyinappropriate aa agency and anti moneylaunderingand whosepurportsto carry out harmonization fiscalpolicies' ofEU, COEandEurozone anti tenorismprovisions

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consistent theIOR's 10year with is Thebehavior ofthe AIF however 10004 legal battle in the United Statesfederalcourtsin the case Alperin v. Vatican District Court for the Northem District of Bank and OFM,lJnited States District MaxineM. Chesney, D.C.No. CV-99-04941-MMC. Califomia. in or no Judge,Presiding. The IOR spared expense legal argument ultimately jurisdiction over it andits preventinga federalcourt from exercising that the IOR confederate, Franciscaa the Order.This bolstersthe argument underanti moneylaunderingregimes. andAIF shouldbe held accountable The Vatican stateby engagingin intemationalbarking throughthe IOR, purportingto carry out EU anti moneylaunderingand anti terrorism mustby directivest}rough the AIF andas a memberofthe Eurozone, follow the applicablelaws andmay not hold itself abovethe law. necessity to As you may know fiom our previouscorrespondence the EU Commission, individualsof Serb,Jewish,and Roma over a thousand our firm represents We in descent worldwidewith the majorityresident Serbia. represent Union including Swedenandthe United individualsresidentin the European severalorganizationincluding the Jasenovac Kingdom. We also represent Council of SerbianRoma,andthe Republik Memorial Society,Independent non and Serbia theAmerican profit ofSrpskaKrajinain Exileall ofBelgrade, Institute.Our clientsarewell into their Research corporation,Jasenovac second decade legal struggleandmany of the original victims have of on unfortunatelypassed without closure. has that Commission indicatedthat within the We appreciate the European frameworkof EU law it doeshaveauthorityto initiate legal or other actions againstthe Vatican. to requestthe EuropeanCommission Thereforewe unequivocally ofthe AIF in general the investigate allegedinstitutionalshortcomings for hold the AIF accountable its willful failure to and if necessary address our legitimatemoneylaunderingallegations that even exhibitswe haveidentified severalIOR accounts In the attached treasury.The or now may still hold remnants profits derivedfrom the Ustasha Order,have IOR and at leastoneofthe accountholders,the Franciscan Any further The categoricallyrefusedto cooperate. AIF refusesto respond. attempts us to bring this matterbeforeAIF appearto be futile absenta by cogentexplanationfrom AIF abouttheir handlingof our correspondence.

the Therefore, behalfofour clientswe allege following: on as it ofthe AIF prevent from functioning an l. The structure personnel and authority; independent the correspondence Vaticandeems doesnot answer 2. TheAIF asa practice objectionable; of matteris an indication in 3. TheAIF's nonfeasance our oarticular institutional failure to comply with applicableEU Directives. actionincluding take Commission appropriate We askthattheEuropean this usingits goodofficesto resolve matter. It is our positionthat financial institutionsmustbehavein an ethicaland legal answers solelyto its God the manner.While we do not dispute Vaticanstate the of in matters offaith, in matters finance lawsof Man apply. lly Respectfu submitted,

Attomey and Solicitor this PSPlease notewe arealsocopying to Moneyvalat theCouncilofEurope is which we understand currently evaluatingthe fitnessofthe AIF. Copyto: Direitorate GeneralofHuman Rights andLegal Affairs Directorateof Monitoring Councilof Europe CEDEX,FRANCE 67075Sfasbourg email dghl.monelval@coe.int :

BRIMSTON E& CO. JONATHAN LE\'Y

ATTORNEY & SOLICIfOFI ' 629 K STREET Nl/v SUITE 3OO WASHTNGTON DC 2C)006 USA 1 -202-3 | a'24O4 TEL/F^x

2,2011 Jtrly (AIF) Finanziaria Autoritddi Informazione Attilio Nicora,President Cardinal San Palazzo Carlo Rome VATICAN CITY Agreement Monetary Victim Goldandthe EU/Vatican Ustasha YourEminence: aboutthis matterin detailwith dle conesponded We havepreviously CenhalBank- We werethenreferred and ELrropean Commission European for General Directorate Commission AtF to thi nascent by the European 5, Affair on January 20| | We havewaitedseveral Econornic Financial and underits enabling fully activeandstaffed for rnonths theAIF to becorne at you beforecontacting abouta matterinvolvitrgcefiainaccounts statutes that di the IOR (lstitutoperle Opere Religione) havebeenrsedto launder the fiom formerYugoslavia, so andretainWorld War II eravictim assets worldwide survivors Treasury. clientsincludeHolocaust Our calledUstasha ofthe assets, Vestiges in and andorganizations Serbia theUnitedStates. property profitstherefiom arestill or moveable immoveable and including at ondeposit lhe IOR. issue with the unresolved and for This request an investigation inquirydeals iiom Treasury" themissinggoldandothervaluables and ofthe "iJstasha State by first formerYugoslavia documented the 1998UnitedStates Aboutthe Fateofthe entitledConcerns Report Eizenstat/Slany Departmeni that whichconcluded therewasevidence Treasury Wirtime Ustasha campgoldand concentration in pointingto Vatican involvement laundering World War. loot afterthe Second

lootedfrom are This goldbullion,silver,andothervaluables victim property regime which Ustasha Croatian and Roma, Jewsby the unrecognized Serbs, demands for hasneverbeenaccounted by the Vaticandespitenumerous Bank the against Vatican including own lawsuitin the UnitedStates our of losses suffered (hrstitute Religious Works).Thevictimswe represent for and includinggold,silver,banknotes jewelry to family property the Ustasha at deposited theHoly See's and whichwaslootedby theUstasha eventually for and Bankin 1944-1946 havebeenunaccounted since Vatican Forexample: KingdomofYugoslaviain 1923. wasbom in Bihac,Bosnia, Nadezda Bates in wasa wealthySerbbusinessman Bihacand JankoBates, Plaintiffs father, family owned Beograd TheBates named Kafana ownedanestablishment a out through theregionandhadaccumulated otherproperties numerous homeandjewelry furnished an greatdealof wealthincluding opulently and of one rncluding dozenhandmadebracelets l8 caralgoldwith sapphires with darksapphires, fashion madein the sarne diamonds threenecklaces and and of of twentyringsrnade l8 caratgold,hundreds golddrtcats' manyitems ofcashanda largestockof a oflesservalue. Theyalsopossessedquantity ofthe Ustasha foodanddrink usedin theirtrade. On June23, l94l agents inhabitants the into Regime entered Bihacandarrested SerbandJewish of pillagingandplundering theBates the Plaintiffwitnessed well organized by properties the neighborhood theUstasha in and farnilyproperty Jewish the with tnrcksconducted ofspecialsoldiers agents.Teams Regime's the herded soldiers manner.The Ustasha in lootingoperation a thorough grounds, where roomsat the Bihacsports and Serbs Jewsinto thechanging Plaintiff valuables. of relieved anyconcealed searched theywerethoroughly wlrereherfather to andherfamily wasfansported l(mjeusaby the Ustasha of the armedforcesunder command by weremurdered Ustasha andbrother of Govemor Bihac,LjubomirKvatemik. the Ustasha is ofthe UnitedKingdomandis legal Dr. Milan Bates a resident an family anddemands to claimson belralfoftheBates representative these to Treasuryestimated wortlr oftheir shareof gold in the Ustasha accounting of$100,000 and 40 ounces thefamilyjewelry worthin excess Bosni4 Kingdom (Vujcic)wasbornin 1930in Vojskova, MilevaReljanovic the in resides Sweden.In 1942 Ustasha and ofYugoslavia currently forcibly removedall Serbsfrom Vojskovain order to Regime'sagents

ownedby plaintifPs "colonize"theregion. Thevillagestoreandits contents by of and family wasseized the Serbresidents thetown terrorized who killed andrapedindiscriminately forces Ustasha armed rampaging to rtere converted cashby the the among Serbs.Thestoreandits contents to added the and Regime's MinistryofColonization theproceeds Ustasha weresentto Jasenovac Treasury.Plaintiffandherfamily members Ustasha campwhereherfatherandsomeofher siblingsdied. Upon concentration the agents confiscated jewelry the Regime Jasenovac, Ustasha the entering citizen a Ms. on farnilyhadconcealed theirpersons. Reljanovic, Swedish s alsorequest an accountlng. Republik ofSerbianRoma, Corrncil the Tlreorganizations, Independent and MemorialCenter Jasenovac Srpska Krajinain Exile,TheJasenovac on Institute alsoreq[estan accounting behalfoftlreirmembers Research ofvictimsofthe Ustasha. or sorne ofwho werevictims legalheirs and are This gold andothervaluables in VaticanBankcustody werelooted as l94l between -1945 partofthe State by theIndependent ofCroatia in Jews, Rorna whichan and Serbs, genocidal against campaign Ustasha were and mainlySerbs Roma, so 500,000 calledundesirables, estimated 'fhe at was liquidated. goldandlootedassets deposited the VaticanBankin by authored Allied documents to 1946according contemporaneous of by investigators butlressed thesworntestimony formerUS Special and and in AgentWilliam Gowenwho while slationed Romeinvestigated of involvedin thehansfer lot to the Vaticanin 1946 inierviewed Ustasha the '1947 . and well ofour Romaclientsareextremely I mustalsoaddthe losses Councilof Serbian the tlrrough effortsofthe Independent documented wereoftenin goldandsilvercoin andwereconfiscated Romaassets Roma. Treasury. part and by the Ustasha became ofthe Ustasha long lawsuitin the United ofa This victim goldhasbeenthesubject decade Works) for the 1999 2010against VaticanBank(hrstitute Religious io States Order.' Thelawsuithowever as andwhichis still pending to TheFranciscan to in withoutprejudice regards the IOR andOFM, it was wasdismissed
' Alperint. Valican DistrictCourtfor theNorthemDistrict Rankatd Ot&4,UnitedStates DistrictJudge, MaxineM Chesney, oftalifornia. D.C. No. Cv-99-04941-MMC. Presidine.

matter oflack of subject not dismissed on themerits,but on grounds jurisdictiondueto Vatican In organimmunityfiom legalprocess sovereign and Thatjudgment wasappealed is now final by orderof the UnitedStates. as Ninth CircuitCourtof Appeals of March201I. We are tlreUnitedStates as now fiee to bringthis matterdirectlyto the Vatican hasbensuggested Mr. in repeatedly thepastby the IOR's attorney, Lena.We havenot doneso and previously the because AIF wasnotyet in existence no appropriate is holders. dreappeal now As existed overthe IOR or its account authority we terminated, bringthis matterto you in a timelyfashion. openan inquiryandaccounting In sum,we arerequesting Commission the of and of into these well founded allegations moneylaundering retention with associated or whichare organs Holocaust victim assets financial by City Stat. agencies ofthe Vatican or readyto submitelectronically by posta largevolumeof We stand these to infonnation including testimony documentation sttpport and ofthe OFM The legalrepresentatives entirely. and allegations to cooperate fiom the tJS of of andIOR arealsoin possession volumes legaldocuments released whichhavenot been Courts tlreirown intemalinvestigations and and arnple opportunity forum,theOFM andIOR has Despite beingprovided victimsby citing by refused answer allegation Holocaust to this repeatedly However, we immunityftom inquiryinstead. and sovereign jurisdictional with the EU, thetime has Agrsement the assert through VaticanMonetary asset matter Holocaust of in finally arrivedfbr closure this long unresolved Commtsston ofthe European laundering the Valicanundertheauspices by CentralBank. andEuropean that accounts areor wereassociated and/ortheirsuccessor IOR accounts ofretaining names identified beingundersuspicion are as with these Holocaust assets: Ante Bonifacic Orderof FriarsMinor Almanac Croatian Newspaper Croatian CatholicMessenger ofthe Holy FamilyofChicago Croatian Custody Historical Society Croatian Liberation Movement Croatian

House Publishing Croatia Croatian (of Danica Newspaper Chicago) Draganovic Fr. Krunoslav Fr. DominikMandic,OFM Printery(of Chicago) Franciscan Psenicnik Srecko of TheCroatian Conffaternity SanGirolamo of TlreRoman CatholicDiocese Zagreb we and in Thankyou for your cooperation this endeavor with all duerespect with that ofthe FIA who areassociated IOR or OFM request members ofa llom recuse themselves tlrismatterowingto theappearance conflictof this giventhe protracted litigationthatpreceded request. interest or by an Finalfy,we wiff request acknowledgement fax +l-202'318-2406 your receipt ofthis letter. regarding email:jonlevy@hargray.com

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BRIMETONE& CO. JONATHAN LEVY

ATAORNEY & SOLICITOR I629 K STREET N\/v SUITE 3OO WA5HINGTON DC 20006 USA | A'2406 | -202'3 TEL/F^X

24, September 201I (AlF) Finanziaria Autoritddi lnformzzione Attilio Nicora,President Cardinal San Palazzo Carlo Rome VATICAN CITY Agreement Monetary Victim Gold andtheEU/Vatican Ustasha YourEminence: I in genocide formerYugoslavia' ofthe Ustasha As attomeyfor survivors this will bedone'We began effort for beliefthatj ustice havean unshakeable in Treasury 1999from theVaticanBankand ofthe Ustasha an accounting the we it Oider.Therefore waswith somehope, greeted Franciscan (AIF) andour refenal Finanziaria ofthe Autoriti di Informazione formation and for General Economic Directorate Commission, to it by the European Unit. Institutions Affairs,Financial Financial di. patiently untilJuly2,20ll for theAutorile .-. Againwe waited We and fully staffed functional' to Finanziaria become Iriformazione of and See our tendered communication. Attachment Certificate mailing'On but to 2, September 201I we attempted ffi your office a reminder we have no received response. claim;we are is Treasury not a solelyhistorical Thematterofthe Ustasha ofthesefundsstill existat or that convinced evidence evenremnants in For undertheAIF's supervision. example, thepastfew years' institutions of formerlyin thecustody involvinglooteddiamonds accusations significant affair'" the ofZagrebhaveappeared, so called"Zagorac thi Diocese

tlat since July the AIF andVaticanBank(IOR) may have We areaware sinceour their overlappingstaffing' This wasone of our requests severed dealsin part with the IOR. Howeverwe do not understand communication no why we havereceived resPonse. a located direct are Our witnesses in their 80's and90's.We haverecently by Treasury individuals ofthe Ustasha witness moneylaundering to WorldWar Italy.He is in affiliatedwith the IOR andOFM in postSecond in his 90's andresides Canada. if However we by I am surethe lackofresponse the AIF is an oversight. we within 30 daysofreceiptofthis communication, anything havenot heard pass on. and will not standidly by while out witnesses survivors or by an Finally,we still request acknowledgement fax +l -202-318-2406 your receipt oftbis letter' regarding email:jonlevy@hargray.com
Sincerely,

. JonathanLevy,PhD

Solicitor

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Dear Levy, Mr.

Followingyour letterof October 2010 andyour request the Commission openan inquiry 20, for to against VaticanCity Stateconceming moneylaundering Holocaust the the of victim assets the and possible oftheir goldin themintingofeuro coins, Commission use yourclaim. the examined carefully The MonetaryAgrcementbetween European the Union (EU) andthe VaticanCity State,asyou rightly havenoticedin your letter,obligesthe VaticanCity Stateto implement set of EU legislation a on prevention money laundering the end of 2010.The Vaticanauthorities curently in the of by are process tansposingthis relevantlegislation of into its legal order,and I can assue you that the Commission its capacity in carefully monitors plocess. this According to the draft law receivedftom the Vatican autho ties, we can inform you that in line with the EU laws requiremnts draft foresees establishment a specialautholity, operationalas of this an of January 2011 for implementing anti-money 1, the launderi[g measues, with the right to convey and approp atecontrols ofthe relevant institutions Thisauthority ofboth in theVatican theHoly See. and will cooperate with the EU andwith the relevantintemationalbodiesactivein the fight againstmoney laundering. your points on the coin issuance the Cornmission As regards, Services contacted Vatican the authorities whichensured that: us

BRIMSTONE CO. & Aftorneys SOLICITORS & 1629K Street NW Suite300 Washington 20006USA DC T EL/FAX 1-202-318-2406
Commission eurcpesnn, B-1049 BluxellesEuropese (32-2) / Commissie, B-1049 BrussetTet6phon6i Betgium. ?9911 11. Ofiice: BU-10/034Terephone: direcl (322) 29697 E5. line

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Monetary Agreement Subiect: Youi letterofNovember17,2010,regarding Eu/Vatican the

DearMr. Levy, I thank you for your letter, where you ask for clarifications about the special authority which the measures the 'Auto td die Vatican is settingup in order to implementanti-money laundering Directive Informazione finanziaria'(AIF). It shouldbe noted that the Vatican law hansposing ofmoney laundering 2005/60/EC theprevention the useofthe financial system the purpose for on of and teno st financingis still at a &aft stage.Accordingto informationfiom the Vatican,it is expected enterinto forceasofJanuary1,2011. to questions. Please belowmy answers your specific find to 2005on 1) The Directive2005/60lEC the EuopeanParliament of the Councilof 26 October and of and the prevention the useof the financialsystem the purpose moneylaundering terorist for of of and of financingaimsto preventthe useof the financialsystem the purpose moDeylaundering for tenorist financing. This Directive requiresMember Statesto prohibit money launderingand tenorist financing ald to set up a preventivesystemobliging the financial sector and a wide range of other pgrsons entities undenake theircustomers, these inciude inler alia identiiyihg and to certain measures: to keeping appropriaterecords,establishingintemal procedures train staff and guard againstmoney laundering and reportingsuspicion money laundering of and teno st financingto the competent and EU is nationalauthorities. an EU Directive,Directive2005/60/EC not directly applicable As (Article 288 of the MemberStates haveto tansposeits requirements their nationallegislation into Treaty on the Functionilg of the EuropeanUnion), which all EU Member Stateshave done. As I mentionedin my reply to your previous letter, the Monetary Agreementbetweenthe EU and the Vatican City Stateobligesthe latter to implementthe Directive in its legal order. the financingof tenorism However,the entities subjectto anti-money laundering combating obligations limited to natual and legal persons; are thus, statesas such are not coveredby the BRIMSTONE CO, & Attomeys SOLICITORS & 1629 Street Suite K Nw 300 Washington 20006 DC USA TEUFAX 1-202-3t8-2406
(32-2) 11 ll. Commission eurcpeenn, B-1049 BruxeliesEurcpese / Commissie, B-1049 Brussel, Beisium. Telephon: 299 OfficeBUI 0/034. Telelhoner direct (32-21296 E5 line 97

Directive. Moreover, directive the 2005/60,8C does coverthe compensation not ofpe$ons who have been the victims of money laundering offences or predicate offence to money larmdering. It is furthermoreto be noted, that the Directive providesfor minimum harmonisationwhich meansthat MemberStatesmay adoptor retainin force stricterprovisionsin this fild than thoselaid down in the Directive in older to preventmoneylaunderingandtenorist financing. The role ofthe European Commission this context asfollowsrif a MemberState in is failsto passthe requirednationallegislation, if the nationallegislation or does not adequately comply with the requirements ofthe Directive, the European Comrnission may initiate legal actionagainstthe Member State.However,underthe Treatyon Euopean Union and the Treaty on the Functioning the of powers interyene padicularcases EuopeanUnion,the European Commission no general has to in as provided in you shouldseekredress described your letter.With regard the explanations to above, at national leveltl|IouehthecomDetent autho ties. 2) Accordingto the draft Vaticanlaw tansposingthe Directive,The 'Autoritd die lnformazione (AIF) will be composed a chief executive finanziaria' of oflicer and his/herstaff will be appointed persons ftom among ofadequate proven and competence professionalism. and 3) The Authority's rulingsarewithin the fiamework ofEU law but theyareonly indirectlysubject to judicial review.lt means that if the VaticanCity Statefails to properlytanspose Directiveof it the complywith the requirements the Directive, European of the Commissiolmay doesnot adequately initiatelegalactionagainst Vatican the City State. However, mentioned as underthe replyto question 1) above,the European Commission no generalpowersto intervene particularcasesas has in described yourletter. in

Yourssincerely,

Benjamin Angel